MarkitSERV, the most widely used electronic trade processing service for OTC derivative transactions, today announced new connectivity and workflow tools in support of LCH.Clearnet Ltd’s expanded service for SwapClear, its interest rate derivatives clearing service. MarkitSERV’s enhancements are being made available in conjunction with SwapClear’s launch today of new features, which include support for clearing forward rate agreements (FRAs) and amortising/accreting interest rate swaps as well as expansions to its service for buy side firms and futures commission merchants (FCMs).
MarkitSERV’s new workflow functionality will benefit US clients subject to the Dodd-Frank Act. For example, MarkitSERV now enables asset managers to select multiple FCMs on a single block trade, have block trades cleared by SwapClear on a split-by-split basis, and anonymise sub-accounts and FCMs on any given trade. In addition, executing brokers can, for the first time, use MarkitSERV to designate their own clearing member for trades cleared through SwapClear.
Adding FRAs and amortising swaps expands MarkitSERV’s coverage of a broad range of over-the-counter interest rate derivative products that includes vanilla interest rate swaps, zero coupon swaps, inflation swaps, overnight indexed swaps and basis swaps, across 17 currencies.
Daniel Maguire, head of SwapClear US, said: “Providing straightforward connectivity to clearing houses is vital for market participants clearing OTC derivative transactions. We are pleased to be working with MarkitSERV to deliver more clearable products and functionality, in addition to a more streamlined process for clearing OTC derivative transactions.”
Henry Hunter, head of Product Management at MarkitSERV, said: “We are pleased to be at the forefront of the extension of central clearing to new products. The introduction of new workflows will help institutions to comply with the Dodd-Frank Act and to clear trades using FCMs at LCH and elsewhere. As the universe of cleared products expands, MarkitSERV will continue to provide clients with the single-point of connectivity they need to transact with multiple counterparts and to direct trades to multiple CCPs and trade repositories.”
MarkitSERV has been certified by, or established links to, LCH.Clearnet, CME, SGX and IDCG for direct submission of interest rate derivative transactions for clearing; to CME, ICE Clear Credit, ICE Clear Europe and Eurex for credit derivatives; and to LCH.Clearnet, CME and SGX for foreign exchange derivatives. MarkitSERV is also engaged with over a dozen other CCPs worldwide and will link to more as they launch.
MarkitSERV has been an important conduit for clearing interdealer swaps since 2004, when it began delivering interdealer interest rate swap trades to SwapClear.
